MyBucks Malawi bank makes 53% profit

MyBucks Banking Corporation Malawi has made a 53 per cent profit after-tax.

According to bank officials, the bank has recorded a profit after tax of K2.2 billion as at 31st December 2020 up from K1.4 billion same period in December 2019.

This represents a 53% growth in profit after tax, according to a published summary of audited financial results co-signed by the bank’s board chairperson Francis Pelekamoyo, board director Morgan Tembo, managing director Zandile Shaba and the chief finance officer Thomson Kumwenda.

According to the published results, the bank continues to show strong performance year on year.

The revenue grew by 26% driven by a 65% growth in loans and advances and 25% in treasury investments. Year on year the total asset base grew by 58% from K72 billion in 2019 to K114 billion in 2020; this was on account of a 65% growth in loans and advances and also a 25% growth in treasury investments.

The bank’s profit after tax of K2.2 billion is attributed to growth in interest generating assets, mainly the 65% growth in the loan book.

Non-interest revenue grew by 323% above the same period prior year due to growth in transactions volume in the transactional business and investment income.

Credit impairments were -174% below prior year due to decline of the non-performing loan book and concentrated efforts in loan recoveries. The decline in credit impairments was due to the Bank’s focus on robust credit risk management. The Bank continues to place emphasis on recoveries of previously written off loans.

Nevertheless, operating costs grew by 81% as a result of the acquisition of Nedbank Malawi, one of the well-established corporate banks in Malawi. The merger resulted in the Bank acquiring additional points of representation and an operationally larger footprint.

Earnings per share for the year increased from K270 in 2019 to K412 in 2020 and Return on Equity (ROE) grew from 18% in December 2019 t0 27% in December 2020.

In its outlook, the bank expects macroeconomic stability to continue in 2021 supported by stable food prices and lower than prior year projected global oil prices.  However, the Bank also anticipates that the impact of COVID-19 on certain sectors of the economy will continue to be felt in the medium term.

Going into 2021, the bank says it will focus on diversifying its revenue base and will continue to focus on impactful cost management. The Bank will remain vigilant in monitoring and managing risks related to COVID-19.

Shaba said MyBucks will always remain committed to ensuring customer satisfaction.

She said in order to improve customer satisfaction and improve efficiencies, the bank will drive its digitisation agenda to grow the business as well as enhance customer experience.

MyBucks Malawi is a fully-fledged Bank with branches in Blantyre, Lilongwe, Mzuzu, Zomba, Mangochi, Dzaleka, Kasungu and Madisi.

Currently, it has a fully-fledged delivery channel of 17 branches, 85 agents, and 30 ATMS across the country, offering a full range of banking products and services that include Bancassurance and microfinance products.

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